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Q.

Can a Irrevocable Power of Attorney be Revoked?

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Summary
An irrevocable POA is hard to revoke and usually requires mutual consent, a court order for agent fraud or breach, or fulfillment of the interest it protects. Simply labeling it "irrevocable" isn’t enough; unilateral revocation is not allowed if the agent has a real vested interest.

If you want to revoke your irrevocable Power of Attorney (POA), let me tell you, it’s very difficult. Under Section 202 of the Indian Contract Act, 1872, a principal cannot revoke such an irrevocable POA to the prejudice of the agent’s interest without the agent’s consent. But it is not truly impossible to revoke.

  • POA cannot be unilaterally revoked by the principal in the usual way if certain legal conditions make it genuinely irrevocable.

  • In general, a POA becomes truly irrevocable only when it is a “power coupled with an interest.”  It means the agent (attorney-in-fact) has a legal or proprietary interest in the subject matter (for example, to secure a loan or complete a transaction), so that revoking it would harm the agent’s interest.

However, in practice, an irrevocable POA can be terminated in limited situations:

  1. Mutual Written Agreement: If both the principal and the agent agree in writing to end the POA, it can be revoked.

  2. Fulfilment of Purpose: Once the specific purpose of the POA is accomplished (e.g., loan paid off, project completed), it ceases to operate.

  3. Breach or Fraud: If the agent misuses power or commits fraud, the principal can seek court intervention to cancel the irrevocable POA.

  4. Death or Incapacity: The death or incapacity of either party generally ends normal POAs. But when a POA is truly irrevocable due to real interest, it may continue until the interest is settled.

Also, simply calling a POA “irrevocable” in its title is not enough. Courts look at whether the agent truly has an interest that justifies irrevocability. I hope this answers your query about can a irrevocable power of attorney be revoked.

Contact NoBroker Legal Expert for POA Revoking Queries.

 

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